Jason Marx, a partner in the Tax, Trusts, and Estates Practice Group, recently outlined the process of estate planning in distinct phases and key components. He emphasizes the importance of understanding each element for effective planning.
Phase One: Core Components of Estate Planning
Last Will and Testament: This document outlines an individual’s wishes regarding their property’s distribution, the executor of their estate, and guardians for any minor children. It specifies how the beneficiaries will receive the property, either outright or in trust.
Trust: Some estate plans include establishing a trust, which can provide a mechanism for managing an individual’s property before and after their death, offering benefits like avoiding probate.
Power of Attorney: A durable power of attorney allows a person (the principal) to appoint an agent to make financial or legal decisions on their behalf if they are unable to do so. Its durability ensures that the agent’s power remains in effect even if the principal becomes incapacitated.
Living Will and Healthcare Directive: This expresses an individual’s healthcare wishes in cases of terminal illness or persistent vegetative states. Combined with a healthcare directive, it designates a healthcare agent to make decisions and access protected health information necessary for informed choices.
Jason Marx’s insights into estate planning highlight the foundational steps individuals should consider when securing their legacy and ensuring their wishes are respected.
